kt_pwf: The Tversky and Kahneman (1992) probability weighting...

In gary-au/pt: Computational models for prospect theory and other theories of risky decision making

Description

Tversky and Kahneman's (1992) probability weighting function is given by

w(p) = p^alpha / ((p^alpha + (1 - p)^alpha)^(1/alpha))

where p is the probability constrained by

w(0) = 0, w(1) = 1, 0 < p < 1,

and alpha is the single parameter for the function. alpha >= 0.28 as the function is not strictly increasing for alpha < 0.28.

Usage

kt_pwf(par, p)

Arguments

par	vector, contains the alpha parameter for the pwf
p	numeric, the probability

References

Tversky, A., & Kahneman, D. (1992). Advances in prospect theory: Cumulative representation of uncertainty. Journal of Risk and Uncertainty, 5(4), 297-323.

p. 206, Wakker, P. P. (2010). Prospect theory: For risk and ambiguity. Cambridge, UK: Cambridge University Press.

See Also

plotProbW, plotOneParProbWFam

gary-au/pt documentation built on May 16, 2019, 5:41 p.m.